SEC. 81-5-73. Cash reserve.
(1) The percentages of each reserve required for demand deposits and time and savings deposits of all state banks, which are not otherwise governed by the Federal Reserve Act or by the board of governors of the Federal Reserve system, shall be the same as those fixed from time to time by the board of governors of the Federal Reserve system for member banks located in this state.
(2) The above required reserves shall at all times consist of actual cash and/or balances due from solvent banks; provided, however, an investment up to, but not exceeding, thirty percent (30%) of said required reserves may be made in direct obligations of the United States Treasury or other obligations fully guaranteed by the United States Government, which mature within one (1) year from date of such investment; and further provided, however, that a portion of said thirty percent (30%) maximum, not to exceed one-half (1 /2 ) thereof, may be made in negotiable certificates of deposit issued by banks domiciled in this state and which mature within one (1) year from the date of issuance thereof.
(3) For purposes of paragraph (1) hereof, matured time certificates of deposit and savings deposits as to which the depositor has given written notice of intention to withdraw shall be considered as demand deposits.
(4) Reserve averaging periods of two weeks' duration, beginning on Thursday, July 11, 1968, and ending on Wednesday, July 24, 1968, and ending on every other Wednesday thereafter, are hereby established for each state bank subject to the provisions of this section. Each such bank shall compute its required reserve daily in accordance with paragraph (1) hereof, and maintain such reserve as provided in paragraph (2) hereof, averaging any reserve deficiency against any reserve excess during each two-week reserve averaging period. A reserve deficiency of an amount not exceeding two percent (2%) of a bank's required reserve at the end of any reserve averaging period may be tolerated; such deficiency, however, must be made good by the end of the next succeeding reserve averaging period. A reserve excess of an amount not exceeding two percent (2%) of a bank's required reserve that exists at the end of any reserve averaging period may be carried over and utilized in the next succeeding reserve averaging period.
(5) Any bank that exceeds the aforesaid two percent (2%) deficiency provision at the end of a reserve averaging period shall be liable for a penalty of fifty dollars ($50.00) per day for each day thereafter until such deficiency is made good. Said penalty may be imposed by the state comptroller and upon receipt of the amount thereof the state comptroller shall deposit same to the maintenance fund of the department of bank supervision.
(6) In computing a bank's reserve under this section the required reserve for a day on which the bank is not open for business (Saturday, Sunday or holiday) will be the same as for the preceding business day.
(7) The state comptroller shall prescribe a loose-leaf form for use by each above-described bank in calculating its reserve requirements. Such forms shall be maintained by the bank, preferably in a loose-leaf notebook, and shall be made available for inspection by bank examining authorities.
SOURCES: Codes, 1942, Sec. 5209; Laws, 1934, ch. 146; 1936, ch. 165; 1962, ch. 175; 1968, ch. 255, Sec. 1, eff from and after July 11, 1968.
1997 Amendment:
SECTION 11. Section 81-5-73, Mississippi Code of 1972, which sets forth the cash reserve requirements for banks, is hereby repealed.
SOURCE: 1997 Laws, Chapter 542, Sec. 11, SB2470, Effective AP-April 10, 1997.